Medallion Metals Limited (ASX: MM8) has received binding commitments for a two tranche placement to raise approximately A$5M before costs. Established gold producer Alkane Resources Limited (ASX: ALK) corner stoned the placement and will hold 4.9% of the Medallion shares on issue upon settlement. Alkane’s support of the placement is a strong endorsement of Medallion’s management, assets, and strategic direction.
In addition to Alkane’s commitment, the placement received strong support from new and existing institutional and professional shareholders.
The placement comprises:
• The issue of 63,319,106 fully paid ordinary shares to sophisticated investors at an issue price of 5 cents per share, placed under the company’s ASX Listing Rule 7.1 and 7.1A capacity
• The issue of 36,680,894 fully paid ordinary shares at the same issue price as the Tranche 1 placement (inclusive of 2,512,680 fully paid ordinary shares to directors of the company), subject to shareholder approval
The placement proceeds to support the company’s activities following the announcement of exclusive negotiations with IGO Limited (IGO) regarding the potential acquisition of certain assets of the Forrestania Nickel Operation (FNO), specifically the Cosmic Boy process plant and associated infrastructure.
Additionally, the placement will fund infill drilling, test work, and further studies considering the development of the Ravensthorpe Gold Project (RGP), continued due diligence on FNO, and the advance of legally binding transaction documentation.
To find out more, please visit www.medallionmetals.com.au
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